NOVATO, Calif., April 16 /CNW/ -- Raptor Pharmaceuticals Corp. (the
"Company") (OTC Bulletin Board: RPTP.OB), today announced its quarterly
financial results. The Company posted a net loss for the three and six months
ended February 28, 2007, of $721,000 and $1,524,000, respectively, and a net
loss per share of $0.02 and $0.05, respectively. As of February 28, 2007,
cash and cash equivalents were $4,035,000 which included $1,620,000 in
proceeds received in January 2007 from the exercises of common stock warrants.
The Company issued 2,700,000 shares of common stock for the warrants which
resulted in a total of 32,333,333 shares of common stock outstanding as of
February 28, 2007.
The Company anticipates expenses to increase over the next 12 months due
to the progress of its research programs and operations, as discussed below.
HepTide(TM) for Hepatocellular Carcinoma ("HCC")
The Company plans to use the proceeds from the recent exercises of common
stock warrants to accelerate its preclinical programs. "We are excited about
our preclinical work in a well accepted liver cancer research model, which is
currently in progress," said Dr. Christopher M. Starr, the Company's Chief
Executive Officer. He further noted, "If we can demonstrate liver targeting of
our Receptor-Associated Protein (RAP) peptide, (which we refer to as
HepTide(TM)), in this research model, we believe that we will be able to move
a targeted therapeutic molecule into the clinic quickly."
The Company's HepTide(TM) concept for the treatment of HCC utilizes
engineered RAP-based peptides conjugated to chemotherapeutic or radio
therapeutic drugs to target their delivery to affected hepatocytes.
HCC, often referred to as primary liver cancer, is caused by the
malignant transformation of hepatocytes, which line the vascular sinusoids of
the liver.
"We already know that RAP binds efficiently to receptors on hepatocytes,"
said Dr. Todd Zankel, the Company's Chief Scientific Officer. "Previous
preclinical studies have shown that over 70% of intravenously-administered RAP
accumulates in the liver within a short period of time. These same studies
revealed that negligible amounts of RAP accumulate in heart, muscle, kidney or
spleen, which are particularly sensitive to cytotoxic therapeutics. We now
need to confirm these results using our engineered RAP peptides," noted Dr.
Zankel.
Radio-labeled RAP peptides will be tested in the second calendar quarter
of 2007 in a preclinical research model of HCC at the National Research
Council in Winnipeg, and tissue distribution of RAP will be evaluated by
whole-body imaging at Charles River Laboratories. "If everything goes as
planned, we would expect to have results from the proof-of-concept study by
this summer," said Sam Teichman, M.D., the Company's Medical and Scientific
Advisor. "If we demonstrate acceptable levels of liver targeting in this
model, we will then work with our clinical and regulatory advisors to
determine the most appropriate therapeutic molecule to attach to the RAP
peptide for the treatment of HCC. We can then proceed with the completion of
our preclinical program with the goal of being in the clinic in the first half
of calendar 2008," noted Dr. Teichman.
In the United States, there are about 20,000 patients diagnosed each year
with HCC, and over 18,000 deaths occur annually from the disease. Rates of HCC
in the U.S. have increased three-fold during the last decade, and the
incidence is expected to continue to increase. In addition, over one million
such patients are diagnosed each year worldwide. Due to the nearly 90%
mortality of this disease, HCC ranks eighth as a cause of cancer-related death
in the U.S., and HCC is the fifth most common solid tumor and the third most
frequent cause of cancer-related death worldwide.
NeuroTrans(TM) for Neurodegenerative Diseases
The Company continues to work with Dr. William Mobley's neuroscience
laboratory at Stanford University, which has expertise in the study of
neurotrophic factors, particularly Nerve Growth Factor (NGF). The laboratory
at Stanford is testing engineered RAP peptides, which we call NeuroTrans(TM),
in cell culture and preclinical models for their ability to enhance the
transport of molecules from blood to the brain.
AmpTide(TM) for Lung Cancer (Mesothelioma)
The Company has engineered a RAP peptide, which we call AmpTide(TM), to
selectively bind a critical part of matriptase, a protein that is over-
produced on lung cancer (mesothelioma) cells. Matriptase has been shown to
enable tumor cells to aggressively invade surrounding tissues and thereby
support tumor growth. In the fourth calendar quarter of 2007, the Company
plans to test whether AmpTide(TM) interferes with the tumor-promoting activity
of matriptase. Such interference may be useful in the treatment of a variety
of cancers, including mesothelioma, which are known to over-produce
matriptase.
WntTide for Osteoporosis
In November 2006, the Company licensed Mesd from Washington University,
St. Louis, for the treatment of osteoporosis and cancer. In the second half of
calendar 2007, the Company will be testing the ability of Mesd and engineered
Mesd-based peptides, which we call WntTide, acting through LRP5, a known
determinant of bone density, to combat osteoporosis and increase bone density
in a preclinical study.
Appointment of The Ruth Group as Investor Relations Firm
Effective April 1, 2007, the Company appointed the New York-based
investor relations firm, The Ruth Group, headed by Carol Ruth, a 39-year
veteran in the investor relations field. "We are excited to be working with a
highly-regarded firm such as The Ruth Group, to help expand our investor and
public outreach and be an advisor on our strategic planning team," said Kim
Tsuchimoto, the Company's Chief Financial Officer.
Other Updates
The Company continues to make progress with building its intellectual
property portfolio. Raptor currently has five patent applications in review
in the U.S., and countries in Europe and Asia, as well as two provisional
patent applications licensed from Washington University. In addition, the
Company has recently submitted two new provisional patent applications in the
U.S. One covers a new family of RAP peptides that have potential applications
as therapeutics and as drug targeting agents and the second application
further supports and expands the Company's coverage in specific disease
indications. Also, to accommodate near-term personnel and laboratory
expansion, the Company has leased an additional 2,500 s.f. contiguous to its
present location at 9 Commercial Blvd. in Novato, California.
About Raptor
Raptor Pharmaceuticals Corp.'s sole business is its 100% ownership of
Raptor Pharmaceutical Inc., an early stage biotechnology research and
development company which bioengineers novel drugs and drug-targeting
platforms derived from the human receptor-associated protein (RAP) and related
proteins.
FORWARD LOOKING STATEMENTS
This document contains forward-looking statements as that term is defined
in the Private Securities Litigation Reform Act of 1995. These statements
relate to future events or our future results of operation or future financial
performance, including, but not limited to the Company's future success in
increasing personnel, lab space and investor outreach, the Company's ability
to conduct future preclinical studies successfully in order to perform future
clinical trials, the timing of any programs, studies or trials, the ability of
RAP to conjugate to chemotherapeutic or radio therapeutic drugs or to target
HCC, the ability of RAP peptides to enhance the transport of molecules from
blood to the brain, the ability of AmpTide to interfere with matriptase's
tumor-promoting activity or to be useful in the treatment of cancer, the
ability of Mesd or Mesd-based peptides to combat osteoporosis and increase
bone density, and the ability of the Company to protect its intellectual
property through patents. These statements are only predictions and involve
known and unknown risks, uncertainties and other factors, which may cause the
Company's actual results to be materially different from these forward-looking
statements. Factors which may significantly change or prevent the Company's
forward looking statements from fruition include that the Company may be
unsuccessful in developing any products; that its technology may not be
validated as the Company progresses further and its methods may not be
accepted by the scientific community; that the Company is unable to retain or
attract key employees whose knowledge is essential to the development of its
products; that unforeseen scientific difficulties develop with the Company's
process; that the Company's patents are not sufficient to protect essential
aspects of its technology; that competitors may invent better technology; that
the Company's products may not work as well as hoped or worse, that the
Company's products may harm recipients; and that the Company may not be able
to raise sufficient funds for development or working capital when required.
As well, the Company's products may never develop into useful products and
even if they do, they may not be approved for sale to the public. The Company
cautions readers not to place undue reliance on any such forward-looking
statements, which speak only as of the date they were made. Certain of these
risks, uncertainties, and other factors are described in greater detail in the
Company's filings from time to time with the Securities and Exchange
Commission (SEC), which we strongly urge you to read and consider, including
the Company's Registration Statement on Form SB-2, as amended, that was
declared effective on July 10, 2006, the Company's annual report on Form 10-
KSB and Form 10-KSB/A filed with the SEC on November 22, 2006, and January 18,
2007, respectively, and the Company's quarterly report Form 10-QSB filed with
the SEC on April 16, 2007, all of which are available free of charge on the
SEC's web site at http://www.sec.gov. Subsequent written and oral forward-
looking statements attributable to the Company or to persons acting on behalf
of the Company are expressly qualified in their entirety by the cautionary
statements set forth in its reports filed with the SEC. The Company expressly
disclaims any intent or obligation to update any forward-looking statements.
Contact:
John Quirk, Sara Ephraim
The Ruth Group
(646) 536-7029 / 7002

For further information:

For further information: John Quirk, +1-646-536-7029, or Sara Ephraim
+1-646-536-7002, both of The Ruth Group